Bitcoin’s Price Recovery Revives Profit Margins For Short-Term Whales, Rally To Extend?

With Bitcoin reclaiming and holding above the key $117,000 price level, this bullish move clearly implies that the ongoing bull market cycle is still alive and kicking. On-chain data shows that BTC’s current upward trend has notably reignited positive sentiment among short-term holders once again.

Short-Term Bitcoin Whales Are Back In The Profit Zone

In the midst of the renewed bullish action of Bitcoin, Darkfost, a market expert, has outlined a positive development in profitability. This rise in profits following the recent upsurge in BTC’s price is spotted among Bitcoin short-term holder whales. After surviving a tumultuous period of volatility, Bitcoin’s short-term holder whales are now sitting in the green, as the key cohorts returned to unrealized profit. 

The move highlights how quickly mood may alter when prices start to move in their favor and suggests a fresh wave of confidence among the market’s more recent major players. It is worth noting that this development is crucial to BTC’s price trajectory as short-term whales usually play a critical role in bolstering momentum and impacting broader market direction.

According to the market expert, short-term holders were put under pressure after the minor downturn at the start of September pushed their unrealized price zone. However, these investors are still defending this area for the time being, which ranges from $108,000 to $109,000 levels.

During similar corrections that occurred in the past, Darkfost highlighted that the short-term holder whales were pushed into realized losses. Nonetheless, this wave of bearish activity was short-lived and also well-defended by the cohorts, allowing BTC to quickly return to its upward trend.

Given that these investors have moved back into unrealized profit and past occurrences, BTC’s ongoing rally is likely to extend, with analysts foreseeing a surge to its current all-time high.

BTC’s Persistent  Respect Of The STH Cost Basis Bands

After examining the Risk Indicator: Realized Price By Short-Term Age Cohorts, on-chain platform Glassnode highlighted that Bitcoin continues to respect the STH cost basis bands. This constant alignment with this metric, which often serves as a gauge of market sentiment and support levels, implies that short-term players continue to have a big impact on market structure.

While respecting STH cost basis bands, the leading data analytics platform noted that failure to maintain the 1-month and 3-month realized level would validate a lack of momentum in the market. On the other hand, staying above them indicates that there is still hope regarding the FOMC statement and its impact on liquidity remains intact.

At the time of writing, BTC is showing strong upward performance, with a nearly 2% increase in the last 24 hours, pushing its price to $117,257. Data from CoinMarketCap shows that BTC’s price today is rising in a gradually bearish investor sentiment, as evidenced by a 10% decline in trading volume in the past day.